X-Box Hackers Trying to Blackmail Microsoft?

wumarkus420 writes "According to this article from CNet News, an anonymous X-Box security research team is threatening Microsoft: either release a digitally-signed official Linux bootloader or face the release of a new exploit that supposedly works without a modchip. While I doubt Microsoft 'negotiates with terrorists,' this should still turn out to be a good I-told-you-so if the exploit is verified." Sounds like a good way to end up in jail.